[Bernstein: Azure Revenue Expected to Grow 45%, Microsoft Target Price $662] According to Deep Tide TechFlow, based on research from Tide Research, Bernstein's October 19, 2026 report predicts that Microsoft's 1Q27 revenue will reach $92.11 billion, 1.6% higher than consensus estimates. Earnings per share are expected to be $4.76, 0.7% above consensus estimates. Azure revenue is projected to grow by 45.6%, exceeding the consensus estimate of 44.9%. Microsoft 365 Commercial Cloud (M365 Commercial Cloud) is expected to grow by 18% in 1Q27 and accelerate to 20% in 2Q27. Bernstein believes that Azure and Office can accelerate simultaneously, with Copilot paid seats surpassing 30 million. Following the easing of capacity constraints, both businesses are expected to grow in tandem, presenting an opportunity for Microsoft's valuation to be re-rated. The outperform rating is maintained, and the target price is raised from $660 to $662, representing a 25% increase from the current stock price of $529.05.